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Abstract

Disclosed is a system for tracking the quantity of inventory held at different locations on a manufacturing floor.

Country

United States

Language

English (United States)

This text was extracted from an ASCII text file.

This is the abbreviated version, containing approximately
72% of the total text.

Double Entry WIP Tracking

Disclosed is
a system for tracking the quantity of inventory
held at different locations on a manufacturing floor.

Tracking the
flow of inventory through a manufacturing facility
is not unlike tracking the flow of money through an accounting
system. In situations where the volume
of flow is high, and the rate
is relatively fast, typical inventory (WIP) tracking systems or floor
control systems require job identification at every area so that data
entry quickly consumes a significant portion of the operator's time.
This system can operate with job identification at only a few areas
in the facility to allow some degree of WIP control, e.g., at the
entry and exit points of the facility.
At the remaining areas, it is
sufficient to track the quantity of each type of WIP entering and
exiting the area.

The facility
is divided up into work-areas, and T-accounts are
set up for each type of inventory to be tracked, flowing through the
work-area. That is, if there are p types
of inventory and m areas,
p*m accounts are set up. If 50 pieces of
type A exit area 1 to
area 2, then a WIP cheque is written to debit area 1's account for
type A inventory by 50 pieces, and credit 50 pieces to area 2's
account for type A cards. By clearing
all the cheques written
against an account, we can determine the amount of cards waiting for
processing in an area. All WIP cheques
are signed by the employee
responsible for moving the card...